Why Investing in ICO’s is Better Than Investing in Stocks

Why Investing in ICO’s is Better Than Investing in Stocks
  • Opening Intro -

    A group of start-ups came together and decided to seek investment collectively.

    They did this by setting up a fund that issued tokens through an Initial Coin Offering (ICO).

-------------------------------------

The Dawn Of A New Opportunity

If given an option to travel back in time, would you take it? A chance to go back and right the wrongs made is a choice most, if not all, will make.

However, there is no such thing as time travel (at least not yet). You only get to learn from them and hope that the next round you will be wiser and that time is now. Let me tell you about a new kind of investment that a group of start-ups came up with.

Initial Coin Offering (ICO)

There are several ways for you to invest your money, some of which include stocks (monetary or/and fiscal) and investment firms.

In each of the options mentioned, you are not made aware of the metric used to decide how your money will be invested. There is simply a rate of return that you expect after a duration of time and this does not always have to be the case.

A group of start-ups came together and decided to seek investment collectively. They did this by setting up a fund that issued tokens through an Initial Coin Offering (ICO).

There are three main points:

  • The public was invited to purchase the tokens which comprised of a small percentage of ownership in the start-ups. This means that each person at purchase got to own a small percentage in all the start-ups that had come together.
  • They also get to trade their tokens publicly (like with stocks) and can cash out at any moment.
  • Should a start-up pull out, the money raised is to be distributed in form of tokens to all the investors.

Benefits Of ICO

  • This idea is revolutionary in that, you do not have to wait a long period of time before realizing your investment (which is the case with most of the investment options available).
  • The diversification factor is also important. You will be able to invest in start-ups that operate in different industries. The failure of one can easily be covered by the success of the others. This in turn secures your investment.
  • An important point to note is that, the start-ups that came together had the backing of a reputable company that runs a start-up accelerator program. This means that the chances of success for those start-ups are high making them even more lucrative. By borrowing this idea, companies in the future can do the same.

Conclusion

In conclusion, you can see that the benefit of such a fund is undeniable. It is a relatively new idea so you probably will not see many people taking it up so soon. However, I urge you to share this article and help spread the word. Should you wish to do further reading and learn more about the birth of this idea, you can visit this website.

other valuable readings:

Image Credit: Pixabay

end of post … please share it!

-------------------------------------------------------------------------------------------------------------

end of post idea

-------------------------------------------------------------------------------------------------------------

Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.

Categories: Investments

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload CAPTCHA.

This site uses Akismet to reduce spam. Learn how your comment data is processed.